The government imposes a fixed fee per year on each firm that operates in a competitive market.

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The government imposes a fixed fee per year on each firm that operates in a competitive market. What hap- pens to output, the optimal scale of a firm, and price if there is free entry into the market?

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Modern Industrial Organization

ISBN: 9780321011459

3rd Edition

Authors: Dennis W. Carlton, Jeffrey M. Perloff

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